Calculate the Incremental EPS for the Following Instrument: Face Value

question 86

Multiple Choice

Calculate the incremental EPS for the following instrument: Face value of 10,000 preferred shares with dividend rate of 5%
$1,000,000
Conversion rate for each preferred share
25 ordinary shares
Income tax rate
30%

• A)$0.14
• B)$0.20
• C)$1.40
• D)$2.00

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